According to a research report this morning, BMO Capital Markets lowers estimates on Kansas City Southern (NYSE: KSU) from $0.88 to $0.81 for Q2/12 EPS.

BMO Capital Markets explained, “We note the following two factors should help mitigate the negative effect of weaker volumes: (1) the favourable impact on the tax rate due to a weaker peso; and (2) the decline in volume is concentrated in unit trains segments (coal &ag) where decremental margins can be contained with effective reduction of crews and associated equipments.”